An exchange traded fund (ETF) that tracks the movement of the Brazilian real against the U.S. dollar has soared this week despite an attempt to cool the currency’s rise.
Brazil this week said it would extend a tax on offshore dollar loans.
WisdomTree Dreyfus Brazilian Real Fund (NYSEArca: BZF) has rallied to nearly $29 a share. It rose 1.5% on Friday.
This week, Finance Minister Guido Mantega suggested ways to control the rapid climb. Yet has Brazil given in to the currency’s’ brisk rise?